alleryStart learning →Home › Bihar Board Class 12 (Arts) › Economics › Simple Applications of Tools of Demand and Supply › Paul Krugman writes that rent control does what …
Paul Krugman writes that rent control does what to new housing construction?
AFunds it
BSpeeds it up
CInhibits it
DIgnores it
Answer & Solution
Correct answer: C. Inhibits it
Capped rents reduce the return on building new rental units, discouraging construction.
Related questions
What do eviction controls in rent regulation set standards for?Isabella Weber argues price caps can help combat which problem?Why can a price ceiling sometimes raise prices?How is aggregate consumers' surplus obtained?Who showed consumer surplus can measure social welfare for a single price change?Which good generally gives a high consumer surplus?With linear curves, consumer surplus has which shape?Producer surplus lies below the equilibrium price and above which curve?